DM Wencelao prices IPO at P12 a share, low end of price range
D.M. Wenceslao and Associates Inc. is set to raise P8.15 billion from its maiden offering of shares next week after pricing near the bottom of its indicative range.
The initial public offering was priced at P12 a share, – the low end of what investors expected – showing subdued investor reaction toward the construction firm.
D.M. Wenceslao, the master developer of Aseana City in Manila Bay area, had marketed its IPO at P12 to P16 each share
The IPO involves 679.2 million new shares, representing 20 percent of the company.
The local stock market has already lost about 10 percent this year amid concerns on a weakening peso and rising domestic inflation.
D.M. Wenceslao is set to start trading on the stock exchange on June 29 following its offering from June 18 to 22.
Proceeds from the offering will be used to fund projects and beef up land bank.